GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Restaurants » Kura Sushi USA Inc (NAS:KRUS) » Definitions » Graham Number

Kura Sushi USA (Kura Sushi USA) Graham Number : $6.81 (As of Feb. 2024)


View and export this data going back to 2019. Start your Free Trial

What is Kura Sushi USA Graham Number?

Graham Number is a figure that measures a stock's fundamental value by taking into account the company's earnings per share and book value per share. The Graham number is the upper bound of the price range that a defensive investor should pay for the stock. According to the theory, any stock price below the Graham number is considered undervalued, and thus worth investing in.

As of today (2024-05-11), the stock price of Kura Sushi USA is $111.90. Kura Sushi USA's graham number for the quarter that ended in Feb. 2024 was $6.81. Therefore, Kura Sushi USA's Price to Graham Number ratio for today is 16.43.

The historical rank and industry rank for Kura Sushi USA's Graham Number or its related term are showing as below:

KRUS' s Price-to-Graham-Number Range Over the Past 10 Years
Min: 4.14   Med: 9.54   Max: 18.48
Current: 16.43

During the past 7 years, the highest Price to Graham Number ratio of Kura Sushi USA was 18.48. The lowest was 4.14. And the median was 9.54.

KRUS's Price-to-Graham-Number is ranked worse than
98.51% of 202 companies
in the Restaurants industry
Industry Median: 1.875 vs KRUS: 16.43

Graham Number is a combination of asset valuation and earnings power valuation. It is a very conservative way of valuing a stock.


Kura Sushi USA Graham Number Historical Data

The historical data trend for Kura Sushi USA's Graham Number can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Kura Sushi USA Graham Number Chart

Kura Sushi USA Annual Data
Trend Aug17 Aug18 Aug19 Aug20 Aug21 Aug22 Aug23
Graham Number
Get a 7-Day Free Trial 6.61 - - - 7.06

Kura Sushi USA Quarterly Data
May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24
Graham Number Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - 4.41 5.76 6.55 6.81

Competitive Comparison of Kura Sushi USA's Graham Number

For the Restaurants subindustry, Kura Sushi USA's Price-to-Graham-Number, along with its competitors' market caps and Price-to-Graham-Number data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Kura Sushi USA's Price-to-Graham-Number Distribution in the Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Kura Sushi USA's Price-to-Graham-Number distribution charts can be found below:

* The bar in red indicates where Kura Sushi USA's Price-to-Graham-Number falls into.



Kura Sushi USA Graham Number Calculation

Graham Number is a concept based on Ben Graham's conservative valuation of companies.

Kura Sushi USA's Graham Number for the fiscal year that ended in Aug. 2023 is calculated as

Graham Number
=sqrt of (22.5* Tangible Book per Share *EPS without NRI)
=sqrt of (22.5*14.77*0.15)
=7.06

Kura Sushi USA's Graham Number for the quarter that ended in Feb. 2024 is calculated as

Graham Number
=sqrt of (22.5*Tangible Book per Share*EPS without NRI (TTM))
=sqrt of (22.5*14.723*0.14)
=6.81

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Kura Sushi USA  (NAS:KRUS) Graham Number Explanation

Ben Graham actually did not publish a formula like this. But he wrote in The Intelligent Investor (1948 version) regarding to the criteria for purchases:

Current price should not be more than 15 times average earnings of the past three years.

Current price should not be more than 1.5 times the book value last reported. However, a multiplier of earnings below 15 could justify a correspondingly higher multiplier of assets. As a rule of thumb we suggest that the product of the multiplier times the ratio of price to book value should not exceed 22.5. (This figure corresponds to 15 times earnings and 1.5 times book value. It would admit an issue selling at only 9 times earnings and 2.5 times asset value, etc.)

Unlike valuation methods such as DCF or Discounted Earnings, the Graham number does not take growth into the valuation. Unlike the valuation methods based on book value alone, it takes into account the earnings power. Therefore, the Graham Number is a combination of asset valuation and earnings power valuation.

In general, the Graham number is a very conservative way of valuing a stock. It cannot be applied to companies with negative book values.

Kura Sushi USA's Price to Graham number Ratio for today is calculated as

Price to Graham number=Share Price (Today)/Graham number (Q: Feb. 2024 )
=111.90/6.81
=16.43

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Please keep these in mind:

1. Graham Number does not take growth into account. Therefore it underestimates the values of the companies that have good earnings growth. We feel that if the earnings per share grows more than 10% a year, Graham Number underestimates the value.
2. Graham Number punishes the companies that have temporarily low earnings. Therefore, an average of earnings makes more sense in the calculation of Graham Number.
3. Graham Numbers underestimates companies that are light with book.


Kura Sushi USA Graham Number Related Terms

Thank you for viewing the detailed overview of Kura Sushi USA's Graham Number provided by GuruFocus.com. Please click on the following links to see related term pages.


Kura Sushi USA (Kura Sushi USA) Business Description

Traded in Other Exchanges
N/A
Address
17461 Derian Avenue, Suite 200, Irvine, California, DE, USA, 92614
Kura Sushi USA Inc is a Japanese restaurant company. It operates revolving sushi chain restaurants in the United States. It provides access to the revolving and express conveyor belts, on-demand ordering screen, plate slot, and the Bikkura-Pon rewards machine. The company offers several dishes, including Dashi Olive Salmon, Tomago, Sweet Shrimp, Tuna, Garlic Tuna Steak, Salmon, among others. Geographically, it derives revenue from the United States of America.
Executives
Brent Takao officer: See Remarks C/O KURA SUSHI USA, INC., 17461 DERIAN AVE., SUITE 200, IRVINE CA 92614
Carin Stutz director C/O BRINKER INTERNATIONAL, INC., 6820 LBJ FREEWAY, DALLAS TX 75240
Jeffrey J Uttz officer: Chief Financial Officer C/O SHAKE SHACK INC., 24 UNION SQUARE EAST, 5TH FLOOR, NEW YORK NY 10003
Shahin Allameh officer: Chief Operating Officer C/O KURA SUSHI USA, INC., 17461 DERIAN AVENUE, SUITE 200, IRVINE CA 92614
Benrubi Steven officer: Chief Financial Officer C/O KURA SUSHI USA, INC., 17461 DERIAN AVENUE, SUITE 200, IRVINE CA 92614
Hiroyuki Okamoto director C/O KURA SUSHI USA, INC., 17461 DERIAN AVE., SUITE 200, IRVINE CA 92614
Kim Ellis director C/O KURA SUSHI USA, INC., 17461 DERIAN AVE., SUITE 200, IRVINE CA 92614
Shintaro Asako director 1301 SECOND AVENUE, SUITE 4200, SEATTLE WA 98101
Manabu Kamei director, officer: Chief Operating Officer C/O KURA SUSHI USA, INC., 17932 SKY PARK CIRCLE, SUITE H, IRVINE CA 92614
Hideto Sugimoto officer: Director of Operations C/O KURA SUSHI USA, INC., 17932 SKY PARK CIRCLE, SUITE H, IRVINE CA 92614
Koji Shinohara director, officer: See Remarks C/O KURA SUSHI USA, INC., 17932 SKY PARK CIRCLE, SUITE H, IRVINE CA 92614
Hajime Uba director, officer: See Remarks C/O KURA SUSHI USA, INC., 17461 DERIAN AVE., SUITE 200, IRVINE CA 92614
Seitaro Ishii director C/O KURA SUSHI USA, INC., 17461 DERIAN AVE., SUITE 200, IRVINE CA 92614
Kura Sushi, Inc. 10 percent owner 1-2-2 FUKASAKA, NAKA-KU, SAKAI-SHI, OSAKA M0 599-8253